17
July
2020
|
13:07
Australia/Sydney

Stats on COVID-19’s impact on business registrations

Summary
  • Fewer companies were registered with ASIC in the first six months of 2020 compared to the first six months of 2019.
  • In the same period, the number of newly registered business names increased.
  • Advice and support are available for companies and small business owners.

During the first six months of 2020 and during the COVID-19 pandemic, company and business name registrations have varied compared to 2019. ASIC has seen a change to the number of companies entering external administration and voluntarily deregistering.

New company registrations

In the first six months of 2019, 113,205 new companies were registered, compared to a slight decrease to 110,246 in the first six months of 2020.

2019 - 113205, 2020 - 110246, decrease of 2.7%

New company registrations were up 7% in January and February but were down from March to May, with the largest drop being 20% in April and the lowest monthly volume since January 2013. Volumes recovered in June, being 8% higher than June 2019.

New company registrations Jan Feb Mar Apr May Jun
2019 14,605 17,404 19,087 16,625 20,682 24,802
2020 15,064 18,711 18,357 13,358 17,752 26,804
Change +3% +8% -4% -20% -14% +8%

Business names

In the first six months of 2019, 186,492 new business names were registered compared to an increase to 205,401 in the first six months of 2020.

2019 - 186492, 2020 - 205401, increase of 10.1%

New business name registrations were down 4% for the January to March period. However, volumes grew quickly with significant increases in April, May and June 2020 compared to the same period in 2019.

Business name registrations Jan Feb Mar Apr May Jun
2019 30,462 32,294 32,625 28,262 32,737 30,112
2020 29,225 32,276 29,797 31,249 39,766 43,088
Change -4.1% -0.1% -8.7% 10.6% 21.5% 43%

External administration

In the first six months of 2019, 3,912 companies entered external administration, a higher figure than the 2,932 companies entering external administration in the first six months of 2020.

2019 - 3912, 2020 - 2932, decrease of 25%

Companies entering external administration for the first time increased 6% in February, but from March has continued to decrease by larger rates, with June dropping 51%.

 External administration Jan Feb Mar Apr May Jun
2019 470 629 718 615 772 708
2020 397 667 683 410 429 346*
Change -16% 6% -5% -33% -44% -51%*

*Figures are provisional and subject to revision given time lag in lodgements of appointment by registered liquidators.

Voluntary deregistration

Similarly, in the first six months of 2019, 47,434 companies lodged to voluntarily deregister, compared to a decreased value of 41,656 in the first six months of 2020.

2019 - 47434, 2020 - 41656, decrease of 12.2%

Beginning in February, each month saw decreases with the largest in May (23%).

Applications to deregister Jan Feb Mar Apr May Jun
2019 6,118 7,213 8,070 7,341 9,010 9,682
2020 5,964 6,587 7,003 6,477 6,962 8,663
Change -3% -9% -13% -12% -23% -11%

More information

Advice and support are available if your company or small business has been affected by a downturn in business due to COVID-19. Visit the pages below for more information.

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ASIC is Australia’s corporate, markets and financial services regulator.